Aspects of International

Marketing

Chapter 1
International Marketing
Dr. Amr Kheir-El-Din
 International
Marketing
International
Marketing is :
Satisfying customer
needs across national
borders
 Why Go International?
1. Market Saturation
Ex: cigarettes, entertainment, fast food,
consumer electronics.
2. Foreign Competition
Ex: cars, copying machines,
photographic, construction
3. ُEmergence of new markets
Ex: China, India, Eastern Europe, NICs
 Why Go International?
4. Globalization of Markets
5. Opportunities via Foreign Aid programs
6. Other reasons
a. Economies of scale
b. Labor cost
c. Tax incentives
d. The desire to test products overseas
e. The desire to have access to
technological advances
 Stages of International Marketing
Expansion

1. Domestic
2. Regional Exporter
3. Exporter
4. International
5. International to Global
6. Global
 Framework of International
Marketing
Political/Legal Economic
Environment
Product Price
International
Customers

Promotion Place

Socio Cultural Technological

Environment Environment
 MNE
Definition
An MNE is a firm that owns,
manages, and controls income
generating assets in more than
one country.
Number of nations
In more than 6 countries.
Ratio of Foreign (F) to total (T)
operations

At least 25% of its

sales, assets, and
profits are generated
outside the home base.
 Management Attitude
Ethnocentric = Are home country oriented

Polycentric = Are host country oriented

Geocentric = Are world-wide oriented

MNE: Characteristics
Economic Power.
Oligopolistic Market structure.
Large percentage of sales, assets,
and profits are generated outside
the home base.
The product of developed nations.